Hair Color Market

According to Stratistics MRC, the Global Hair Color Market is accounted for $27.2 billion in 2023 and is expected to reach $52.3 billion by 2030 growing at a CAGR of 9.8% during the forecast period. Hair color, also known as hair dye or hair coloring, refers to the practice of changing the natural color of one's hair using various chemical or natural substances. Hair color is commonly used for cosmetic purposes, such as covering gray hair, achieving a different aesthetic look, or simply expressing one's personal style.

According to the Ministry of Finance of the People's Republic of China, the total public spending on hygiene/personal care and health care in 2021 for China was estimated to be CNY 1.92 trillion (USD 295.68 billion).

Market Dynamics: 

Driver: 

Evolving fashion and beauty trends

Celebrities wield considerable influence over public perception and trends, and their hair color choices often set new standards for style. When celebrities endorse specific hair color brands or flaunt iconic color changes, it creates a powerful marketing tool. Consumers are more likely to embrace these products, seeking to emulate their favorite stars' looks. As a result, hair color companies can leverage these endorsements and iconic transformations to expand their consumer base and boost product sales. The collaboration between celebrities and hair color brands can be a mutually beneficial strategy, further enhancing the market's growth potential.

Restraint:

Chemical sensitivities and allergies

Many traditional hair color products contain chemicals like ammonia and paraphenylenediamine (PPD) that can trigger allergic reactions and sensitivities, ranging from mild skin irritation to severe dermatological issues. This concern has led to increased consumer wariness and a demand for gentler, hypoallergenic hair color alternatives. Manufacturers are now under pressure to develop formulations that minimize the risk of adverse reactions while delivering vibrant and long-lasting color. Adhering to stringent safety standards and providing clear labeling of potential allergens are crucial steps to alleviate this restraint and maintain consumer trust in the hair color industry.

Opportunity:

Celebrity endorsements and iconic hair color changes

With changing consumer lifestyles and preferences for convenient, ready-to-eat meals, there's a growing need for packaging solutions that can maintain product freshness and quality over longer periods of time. Hair Color, equipped with advanced barrier properties and sealing technologies, effectively extend shelf life by preventing spoilage, microbial contamination, and oxidation. This addresses the consumer's desire for convenient yet safe food options and aligns with industry trends towards minimizing food waste. As a result, the adoption of Hair Color is fueled by their ability to meet the crucial requirement of prolonged product shelf life.

Threat:

Evolving regulations and restrictions on certain ingredients 

As governments and regulatory bodies become more stringent regarding the safety and composition of cosmetic products, including hair color, manufacturers face challenges in adapting to compliance requirements. Ingredient restrictions can lead to reformulations or the removal of previously used components, potentially affecting product effectiveness and performance. This can result in increased production costs and the need for extensive safety testing. Additionally, compliance with varying global regulations can complicate international trade and product availability. Manufacturers must continually monitor and adjust their formulations to align with changing regulations, which can impact product innovation and consumer choices, posing a significant challenge to the industry.

Covid-19 Impact: 

The COVID-19 pandemic had a multifaceted impact on the hair color market. Initially, lockdowns and social distancing measures led to reduced salon visits, prompting some consumers to turn to at-home hair coloring solutions. However, the economic uncertainty and stay-at-home lifestyle also caused many to reduce discretionary spending on beauty products, including hair color. Supply chain disruptions and manufacturing challenges affected product availability and caused temporary shortages. Additionally, safety concerns during salon visits and the closure of some salons impacted professional color services. While at-home color kits gained popularity, the overall market saw fluctuations. As the pandemic evolves, consumer preferences and purchasing habits in the hair color market continue to adapt.

The temporary hair color segment is expected to be the largest during the forecast period

The temporary hair color segment is expected to have a lucrative growth. Unlike permanent hair dyes, temporary hair color products do not penetrate the hair shaft deeply, allowing for color change without long-lasting commitment. These products are available in various forms, including sprays, gels, shampoos, and rinses. They offer a quick and easy way to experiment with different shades, highlights, or vibrant colors without the potential damage associated with permanent dyes. Temporary hair color is particularly popular for special occasions, festivals, or seasonal trends. It provides a dynamic and low-risk option for individuals to express their style and creativity, making it appealing to a broad consumer base seeking flexibility and temporary transformations without the permanence of traditional hair dyes.

The supermarkets/hypermarkets segment is expected to have the highest CAGR during the forecast period

The supermarkets/hypermarkets segment is anticipated to witness the fastest CAGR growth during the forecast period. These stores offer a wide selection of brands, shades, and formulations, making it convenient for consumers to browse and purchase hair color products during their routine shopping trips. The in-store experience often includes knowledgeable staff and attractive displays that help consumers make informed choices. Additionally, the accessibility of supermarkets and hypermarkets in urban and suburban areas ensures broad product availability. These retail outlets cater to a diverse customer base, including those seeking affordable at-home hair color solutions and professional salon-quality products, contributing to the hair color market's widespread reach and consumer accessibility.

Region with largest share:

During the forecast period, it is expected that the Europe market will continue to hold a majority of the market share. This region boasts a diverse and fashion-conscious consumer base, driving consistent demand for hair color products. Consumers in Europe have a strong affinity for hair color innovations, including natural and organic options, reflecting the growing trend of eco-consciousness. The European market is characterized by a blend of professional salon services and at-home colouring solutions, making it a dynamic and multifaceted industry. Moreover, stringent regulatory standards and increasing awareness of product safety contribute to the development of high-quality and safe hair color formulations. With a rich history of beauty and fashion, Europe continues to be a significant hub for hair color trends, research, and product development.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period. With a large and diverse population, this region experiences increasing demand for hair color products, driven by factors such as urbanization, rising disposable incomes, and a growing beauty-conscious consumer base. The market reflects a blend of traditional preferences and an appetite for trendy and vibrant hair color shades. Moreover, the popularity of natural and herbal hair color alternatives aligns with the region's focus on wellness and sustainability. As a result, Asia Pacific presents a fertile ground for both established and emerging brands to expand their product offerings and cater to the diverse and dynamic preferences of consumers.

Key players in the market

Some of the key players in Hair Color market include Coty Inc., Godrej Consumer Products Limited, Estée Lauder, Henkel AG & Co. KGaA, Arctic Fox, Aroma, Avon Products, Cadiveu Professional USA, L’Oréal S.A, Combe Incorporated, PZ Cussons Beauty LLP, Conair, Hygienic Research Institute Pvt. Ltd. (Brand-Streax), Johnson & Johnson, Kao Corporation and Revlon.

Key Developments:

In July 2022, Mamaearth, a direct-to-consumer (D2C) startup, acquired Mumbai-based BBlunt from Godrej Consumer Products Limited (GCPL).

In June 2022, With the launch of the new L'Oréal Paris Men Expert One-Twist Hair Color, the brand's first permanent organic hair color technique created specifically for men in the hair color market, covering up greys will be easier, quicker, and more durable than ever.

In March 2022, the iconic Creamy Bubble color range from Liese, Singapore, was reintroduced with new packaging that connects to a cutting-edge virtual experience. Natural brown and trendy colors are included in the Liese Creamy Bubble Color line. Three brand-new, modern hair coolers are being released in conjunction with the relaunch: Chiffon Brown, Berry Pink, and Olive Ash.

Products Covered:
• Permanent Hair Color
• Semi-permanent Hair Color
• Demi-permanent Hair Color
• Bleach-highlights
• Temporary Hair Color
• Other Products
 
Natures Covered:
• Professional
• Consumer (DIY)

Categories Covered:
• Natural 
• Chemical 
 
Forms Covered:
• Powder
• Cream & Gel
 
Genders Covered:
• Males
• Females

Distribution Channels Covered:
• Supermarkets/Hypermarkets
• Convenience/Grocery Stores
• Health and Beauty Specialist Retailers
• Online Retail Stores
• Other Distribution Channels

Applications Covered:
• Pharmaceutical
• Personal care
• Food & Beverages
• Ready-to-eat meals
• Soups & Sauces
• Other Applications

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan        
o China        
o India        
o Australia  
o New Zealand
o South Korea
o Rest of Asia Pacific    
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa 
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings: 
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances